CEE Bonds

Yapi Kredi printed its $500m five year senior bond on Monday with a new issue premium of 20bp-25bp — a hefty but necessary concession, vindicated by the deal trading around re-offer on Tuesday.

Ukrainian chicken producer MHP is looking to lock in a lower cost of funds and reduce the cost of its liabilities with a buyback of its 2020s, combined with a new issue.

Yapi Kredi shrugged off last Friday’s downgrade by Moody’s and was well on its way to selling a new five year senior bond on Monday morning, having started around 40bp back of fair value, according to a lead manager.

Vakifbank has privately placed its third Turkish lira denominated covered bond to international investment banks. The deals, which provided competitive long-term funding and came in response to onerous swaps market regulation, are likely to be mimicked by Turkey’s other main lenders.

Gazprom has mandated five banks for a euro benchmark bond with a maturity between eight and 10 years.

Georgia Capital, the investment arm of Bank of Georgia Group (BGEO), had the sole attention of EM investors on Monday when it printed its new deal 70bp-75bp wider than Bank of Georgia.

Georgia Capital, the investment arm of Bank of Georgia Group (BGEO), had the sole attention of EM investors on Monday with a new six year note.

Turkcell, Turkey’s leading mobile phone operator, is preparing the ground for issuing a new Eurobond, and has applied to the country’s capital markets board for approval.

Yapi Kredi has privately placed Turkish mortgage backed covered bonds to the European Bank for Reconstruction and Development (EBRD) and Clean Technology Fund (CTF) to promote energy saving improvements in the financial sector.

Slovenia printed €1.25bn by way of a triple tranche euro bond tap on Wednesday from a book of €4bn, paying small new issue premiums. Marjan Divjak, director general in Slovenia’s Ministry of Finance, said that the country is “more or less done” in the international bond markets for the year.

Books for the Republic of Slovenia’s triple tranche euro bond tap were in excess of €3.6bn by lunchtime on Wednesday, with final spreads having been set for each clip. The deal is part of a liability management exercise that swaps out short dated dollar debt for longer euro denominated paper.

Gazprom made its sixth appearance in the Swiss franc bond market on Wednesday, but for only the first time as an investment grade credit after S&P upgraded its rating. Institutional investors, which only buy bonds that are eligible for the Swiss Bond Index, piled into the transaction, pushing pricing down and the size up.